Technological Environment and Innovation: Digitalization, Automation, Disruption and IPR (Basics) Questions

Question 1

What is digitalization?

Accepted Answer

**Digitalization** means using digital technologies and data to improve or transform business processes and customer experience.

Question 2

Define technological environment.

Accepted Answer

**Technological environment** refers to the level of technology and the pace of technological change that affects business products, processes and competition.

Question 3

What is automation?

Accepted Answer

**Automation** is the use of machines/software to perform tasks with minimal human intervention.

Question 4

What is disruption in business?

Accepted Answer

**Disruption** is when a new technology or business model changes the market drastically and makes older methods less relevant.

Question 5

What is IPR?

Accepted Answer

**IPR (Intellectual Property Rights)** are legal rights that protect inventions, creative works and brand identity.

Question 6

Name any one type of IPR.

Accepted Answer

Example: **Patent** (or Trademark/Copyright).

Question 7

Explain digitalization and its benefits for business (any three).

Accepted Answer

**Digitalization** uses digital tools (apps, e-commerce, analytics) to improve performance.

Benefits (any three):
- wider **market reach** through online channels
- faster service and better **customer experience**
- better decisions using **data analytics**
- improved efficiency in operations (billing, CRM)

Thus, digitalization improves competitiveness and responsiveness.

Question 8

Explain automation and state its advantages and limitations (any three points).

Accepted Answer

**Automation** performs tasks using machines/software.

Advantages:
- higher **productivity** and speed
- consistent **quality** with fewer errors
- improved safety in hazardous tasks

Limitations:
- high initial investment and maintenance
- need for skilled workers
- risk of job displacement

(Write any three overall.)

Question 9

Differentiate product innovation, process innovation and business model innovation with examples.

Accepted Answer

Differences:
- **Product innovation**: new/improved product features (example: better camera smartphone).
- **Process innovation**: improved production/service method (example: automated assembly line).
- **Business model innovation**: new way to deliver value (example: subscription streaming, platform model).

Thus, innovation can occur in what we sell, how we make it, or how we deliver value.

Question 10

Explain IPR and its importance for business (any three points).

Accepted Answer

**IPR** protects inventions, creativity and brand identity.

Importance (any three):
- prevents copying and protects **competitive advantage**
- encourages **innovation** by giving legal protection
- builds **brand value** (trademark) and customer trust
- allows licensing and royalty income

Hence, IPR supports long-term business growth and innovation.

Question 11

State major technology risks for businesses (any three).

Accepted Answer

Major technology risks (any three):
- **cyber attacks** and malware
- **data breaches** and privacy violations
- system downtime/business interruption
- online fraud and identity theft
- compliance risk with data/privacy laws

These risks require security controls and awareness.

Question 12

Explain disruption (technological disruption) and how a business can respond (any three measures).

Accepted Answer

**Technological disruption** happens when a new technology or business model changes the market and reduces the relevance of existing products/services.

Business responses (any three):
- invest in **innovation/R&D** and upgrade products/services
- adopt digital tools and improve **customer experience**
- reskill employees and improve processes (automation/analytics)
- monitor competitors and collaborate/partner where needed

Thus, timely adaptation helps the firm survive and grow during disruption.

Question 13

Explain technological environment and its impact on business with a table/flowchart.

Accepted Answer

### **Technological Environment and its Impact on Business**

The **technological environment** includes changes in technology that influence products, processes and competition. Firms that adopt technology can gain advantage, while slow adopters may lose market share.

| Technology change | Business impact |
|---|---|
| **Digitalization** | online reach ↑, faster service, better data decisions |
| **Automation** | productivity ↑, consistent quality, lower errors |
| **Disruption** | old models become irrelevant, competition changes |
| **Cyber risk** | need for security controls and compliance |

```text
New technology → Innovation/Disruption → Change in customer expectations
            → Business response (adopt/innovate) → Performance
```

Thus, technology creates both opportunities and threats for business.

Question 14

Differentiate digitalization and automation with a table and examples.

Accepted Answer

### **Digitalization vs Automation**

| Basis | **Digitalization** | **Automation** |
|---|---|---|
| Meaning | using digital tools/data in processes | machines/software perform tasks |
| Focus | information flow + customer interface | task execution + speed |
| Example | e-commerce, CRM, analytics | robots, automated billing |
| Benefit | better reach and decisions | consistent quality and productivity |

Both often work together: digital systems create data and automation executes tasks faster.

Question 15

Explain IPR and classify its types with a table/diagram.

Accepted Answer

### **IPR (Intellectual Property Rights) and Types**

**IPR** provides legal protection for creative and innovative work.

| Type | Protects | Example |
|---|---|---|
| **Patent** | invention/process | new machine design |
| **Trademark** | brand identity | logo/brand name |
| **Copyright** | creative work | book/music/software code |
| **Trade secret** | confidential know-how | recipe/formula |

```text
Idea/creation → IPR protection → Prevent copying → Competitive advantage
```

Therefore, IPR supports innovation and brand value in business.

Technological Environment and Innovation: Digitalization, Automation, Disruption and IPR (Basics)

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